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Are Investors Undervaluing New Gold (NGD) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is New Gold (NGD - Free Report) . NGD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NGD has a P/S ratio of 1.61. This compares to its industry's average P/S of 4.64.
Finally, we should also recognize that NGD has a P/CF ratio of 7.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NGD's current P/CF looks attractive when compared to its industry's average P/CF of 11.34. Within the past 12 months, NGD's P/CF has been as high as 9.01 and as low as 3.27, with a median of 5.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that New Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NGD feels like a great value stock at the moment.
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Are Investors Undervaluing New Gold (NGD) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is New Gold (NGD - Free Report) . NGD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NGD has a P/S ratio of 1.61. This compares to its industry's average P/S of 4.64.
Finally, we should also recognize that NGD has a P/CF ratio of 7.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NGD's current P/CF looks attractive when compared to its industry's average P/CF of 11.34. Within the past 12 months, NGD's P/CF has been as high as 9.01 and as low as 3.27, with a median of 5.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that New Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NGD feels like a great value stock at the moment.